”While upside potential has tapered as DBS’s valuation has improved since January 2018, dividend yield of 4.3 percent will increase total upside,” the investment bank said in a note this week.

With reforms to Basel rules removing uncertainty, Nomura said it expected DBS to gradually raise its leverage to 11.5 times from 2017’s 11.2 times by using a 50 percent average dividend payout ratio over the next five years.

“This should support stronger ROE [return on equity] and better capital management,” it said.

Nomura tweaked its target price to S$32.10 from S$32.00 and kept a Buy call.